Annual Business Plan and Budget

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Annual Business Plan and Budget

Council’s challenge in framing its Annual Business Plan is to achieve the outcomes within the Plan without presenting an unrealistic rate burden on the community.

In funding the 2017/2018 Annual Business Plan, Council has limited the increase in total General Rate Revenue to 0.5%. This increase is a deviation from Council’s long term forecast increase of 4% due to the following considerations:

Growth in new rate assessments;

­Lower than expected Local Government Price Index (LGPI) / CPI for the 2016/2017 financial year (2% CPI March 2017);

Increased spending ont he renewal of Council's existing infrastructure to ensure Council is renewing assets when they are required to rather than creating an issue for future generations;

The disciontinuation of the Council discretionary pensioner concession rebate of $50 at a saving to ratepayers of $63K;

Electricity, Gas, Water and Postage increases anticipated to be greater than CPI;

The State Government transfer of Housing SA's Community Housing Stock withint he Wattle Range Council, will result in an increase in rate rebates given to this entiity by $89K.

Given this challenge, Council continues to maintain its financial sustainability and attainment of Key Performance Indicators in line with Long Term Financial objectives. Key results expected for 2017/2018 include;

­An operating surplus of $451,000 and operating surplus ratio of 2%;

Councils measure of debt, Net Financial Liaibilities Rates is forecasted to be a conservative 19%, with no requirement for additional loan funds,

­Existing assets are being renewed in a timelier manner an indicator of this is the Asset Sustainability Ratio of 92%.

In developing the 2017/2018 Annual Business Plan, Council has focussed on reviewing the organisation and in particular, the services provided and the future infrastructure requirements of the Wattle Range Council area.

For the forthcoming year economic development will continue to be a strong focus as will the finalisation of Council’s 2017 – 2021 Community Strategic Plan.

A key component of the 2017/18 Annual Business Plan is the $6.52 Million Capital Expenditure budget. Council continues to focus on increasing asset renewals, in 2017/18 $4.12 Million has been allocated for the renewal of a wide range of existing facilities and infrastructure. Council has also committed $2.40 Million for the upgrade and acquisition of new assets. To assist Council in funding this Capital Expenditure budget, in 2015 the Federal Government announced an increase in funding of Roads to Recovery for 2017/18. Council also welcomed the Federal Government budget announcement of the reintroduction of the Supplementary Roads funding. The additional funds have been directed towards addressing the backlog of road infrastructure asset renewals.

Copies of the 2017/18 Annual Business Plan and Financial Budget Statements are available from the Council's Millicent, Beachport and Penola Offices during normal business hours, or can be downloaded by clicking on the link below.